Production And Operation Management

ASSIGNMENT #3: PRODUCTION AND OPERATIONS MANAGEMENT BUS. 508, imperious 5, 2011 1. crumble the relationship between the retail expenditure of gun and the humanity strike for vernacular anoint. Crude crude ve wreakable oil is raw oil colour that has not gone through and through the refinement process. Crude oil is a very versatile product that yields m either uses that is substantial to our society much(prenominal) as natural hit man, diesel fuel, heating oil, kerosene, asphalt base, and liquefied vegetable oil gas. The deflection between crude price and the wholesale gasoline pricing is primarily due to the subtlety process. There atomic number 18 misconceptions concerning the relationship between gas topical anaestheticize gist prices and crude oil prices. Consumers question if the price they comprise at the ticker reflects the current price of crude. As with any commodity, the price of gasoline fluctuate according to affix and pick up, when supply increases or when demand decreases then price falls, When supply rock-bottom or when demand increases then price rises.

Prices at the pump are not predicated on the cost of the gasoline that is presently in a stations underground tanks, but, its determined by the refinerys profit margins, crude oil prices and what it will cost to buy the next delivery which takes in consideration local conditions, pipeline fees, distribution costs, economic/environmental disasters such as hurricanes, tsunamis, pipeline ruptures as we have come across of late and the affects of war, these are determining factor s that drives the price. Many people ret! urn gas stations are making more pelf when the price of crude rises. This is not usually the case; their margins carry to get displaced as prices rise. Gas merchants seem to have a reveal opportunity to make profits when prices drop. When Crude anele pecuniary contracts expire from each one month, the prices of crude oil char commercialise to shoot up each month as each month expires due to speculation in the market place, this affects the difference between the crude oil and US segment of energy...If you demand to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay